Sanofi-aventis to acquire Merck's interest in Merial
Tuesday, 4 August 2009
Sanofi-aventis generated net sales of 7,438 million pound, an increase of 11.2 per cent on a reported basis in the second quarter of 2009, said a press release.
Exchange rate movements had a favourable effect of 4.7 points, with the appreciation of US dollar against euro more than offsetting the unfavourable effects of some other currencies.
At constant exchange rates, and after taking account of changes in structure, net sales rose by 6.5pc. Excluding changes in structure and at constant exchange rates, second-quarter net sales growth was 3.7pc.
The company posted net sales of l 4,545 million pound, an increase of 6.7pc in the first half of 2009.
Meanwhile, Sanofi-aventis (EURONEXT: SAN and NYSE: SNY) and Merck and company, Inc. (NYSE: MIRK) have signed a definitive agreement under which Merck will sell its 50 per cent interest in the current animal health joint venture, Medal Limited (Merial), to Sanofi-aventis for $4 billion (US) in cash. Formed in 1997, Merial is a leading animal health company that is a 50/50 joint venture between Merck and Sanofi-aventis. Following the close of the transaction, Sanofi-aventis will own 100 per cent of Merial.
Sanofi-aventis said the acquisition price values Merial on the basis of 3.0 x 2008 sales and 10.2 x 2008 earnings before interest and taxes (EBIT). The acquisition is expected to be accretive to Sanofi-aventis' adjusted net income from the first year.
In addition to the Merial agreement, Merck, Sanofi-aventis and Schering-Plough announced the signing of a call option agreement. Under the terms of the call-option agreement, following the closing of the Merck/Schering-Plough merger, Sanofi-aventis would have an option to combine the Intervet/Schering-Plough Animal Health business with Medal to form an animal health joint venture that would be owned equally by the new Merck and Sanofi-aventis.
The sale of Merck's interest in the Medal joint venture is subject to clearance by the European anti-trust authorities. Merck said it anticipates completing the transaction before its planned merger with Schering-Plough is finalised, which is expected to occur during the fourth quarter of 2009. Following the close of Merck's merger with Schering-Plough, Sanofi-aventis would have an opportunity to conduct due diligence before any exercise of its call option to form the new joint venture.
Exchange rate movements had a favourable effect of 4.7 points, with the appreciation of US dollar against euro more than offsetting the unfavourable effects of some other currencies.
At constant exchange rates, and after taking account of changes in structure, net sales rose by 6.5pc. Excluding changes in structure and at constant exchange rates, second-quarter net sales growth was 3.7pc.
The company posted net sales of l 4,545 million pound, an increase of 6.7pc in the first half of 2009.
Meanwhile, Sanofi-aventis (EURONEXT: SAN and NYSE: SNY) and Merck and company, Inc. (NYSE: MIRK) have signed a definitive agreement under which Merck will sell its 50 per cent interest in the current animal health joint venture, Medal Limited (Merial), to Sanofi-aventis for $4 billion (US) in cash. Formed in 1997, Merial is a leading animal health company that is a 50/50 joint venture between Merck and Sanofi-aventis. Following the close of the transaction, Sanofi-aventis will own 100 per cent of Merial.
Sanofi-aventis said the acquisition price values Merial on the basis of 3.0 x 2008 sales and 10.2 x 2008 earnings before interest and taxes (EBIT). The acquisition is expected to be accretive to Sanofi-aventis' adjusted net income from the first year.
In addition to the Merial agreement, Merck, Sanofi-aventis and Schering-Plough announced the signing of a call option agreement. Under the terms of the call-option agreement, following the closing of the Merck/Schering-Plough merger, Sanofi-aventis would have an option to combine the Intervet/Schering-Plough Animal Health business with Medal to form an animal health joint venture that would be owned equally by the new Merck and Sanofi-aventis.
The sale of Merck's interest in the Medal joint venture is subject to clearance by the European anti-trust authorities. Merck said it anticipates completing the transaction before its planned merger with Schering-Plough is finalised, which is expected to occur during the fourth quarter of 2009. Following the close of Merck's merger with Schering-Plough, Sanofi-aventis would have an opportunity to conduct due diligence before any exercise of its call option to form the new joint venture.